Sheng Siong

Sheng Siong Group Ltd.
Public
Traded as SGX: OV8
Industry Retail
Founded 1985 (1985)
Founders Lim Hock Chee
Lim Hock Eng
Lim Hock Leng
Headquarters 6 Mandai Link, Singapore 728652
Number of locations
 40 stores (as of May 2016)
Key people
 Lim Hock Chee (CEO)
Products Grocery stores, supermarkets and hypermarkets
Revenue Increase SGD $764 million (2015) [1]
Increase SGD $56.7 million (2015) [1]
Number of employees
 2,324 (2010).[2]
Website Corporate Website
Inside Bedok Central outlet (2008)
Tekka Mall with the former signboard of Sheng Siong (2006)

Sheng Siong Group Ltd. (Chinese: 昇菘集团) is the parent company of Sheng Siong Supermarket Pte Ltd, commonly known as Sheng Siong, the third largest chain of supermarkets in Singapore.[3]

History

Sheng Siong is a chain of supermarkets in Singapore founded by Mr Lim Hock Chee and his two brothers, Mr Lim Hock Eng and Mr Lim Hock Leng. Mr Lim Hock Chee is also the current CEO of Sheng Siong. [4][5][6][7]

The Lim family moved to another farm in Punggol in the 1970s. Years later, the farm experienced an excess supply of pigs, thus Lim Hock Chee and his wife rented a small section within a Savewell provision store in Ang Mo Kio to sell the chilled pork from their pig farm in 1984.[4] In 1985, following the move to phase out pig farming by the Singapore Government, the Lim brothers ventured into the retail business by launching Sheng Siong's foremost operation in a single shophouse unit, (in the same Savewell store premises in which Lim Hock Chee was selling pork, after the Savewell chain faced financial trouble and had to let go of its stores) together with an ex-Savewell managerial staff.[4][8][9][10] Sheng Siong has since evolved into a chain of 37 stores, mainly supermarkets, in Singapore.

The store initially focused on providing a wide range of no-frills products and increased sales by accepting lower profit margins. Other cost-saving measures included employing less staff and avoiding the use of in-house plastic bags.[6][9]

Sheng Siong has been awarded top 500 retail enterprises in 2007 and became the third-largest retailer in Singapore.[11] The company has also been awarded as Superbrands Singapore from 2008 to 2014.[12][13] Sheng Siong Group Ltd. is publicly listed at the SGX (code: OV8) since August 17, 2011.[14]

As of July 2014, the Lim brothers have a net worth of $545 million and are ranked 45th on the Forbes Singapore's 50 Richest list.[15]

Business Strategy

The company “maximises profit margins by constantly challenging itself to churn out higher turnover per square feet of retail space”.[10] It also strategizes the business so as to offer products at a low price and provide efficient service that can serve more customers within the same period of time.[10]

Future plans

In 2009, Lim expressed his hopes to take the Sheng Siong business public and also expand it within Malaysia[4][10] or China[16] in future.

Company Revenue

For the financial year of 2014, the company’s revenue had increased 5.6% year-on-year to S$726.0 million.[17]

In the second quarter of 2014, the company saw a 30.3% growth of its net profits to S$11.1 million.[18]

Environmental practices

Sheng Siong has installed the largest single solar panel system in Singapore on the roof of its headquarters and distribution centre at Mandai. Under the best conditions, the 11,000 sq m installation can supply enough power to more than 200 four-room flats.[19]

In October 2013, Sheng Siong received the Solar Pioneer Award for its efforts to become a more environmentally-friendly business.[20][21]

Publicity

The supermarket chain has also launched its own television variety programmes named "The Sheng Siong Show" on Channel 8 (since 2007) and "Sheng Siong Live!" on Suria (since 2009) broadcast in Singapore, usually on weekends during prime time.[10][22]

The show aims to generate publicity and sales promotion for Sheng Siong. It is currently in its tenth year with the latest season (Season 21) airing in May 2017.[23]

Philanthropy

In 2012, Sheng Siong received the Merit Award from the People’s Association Community Spirits Award in recognition of its committed efforts in reaching out and contributing to the community.[18][22]

From 2009 to 2014, Sheng Siong was a benefactor for Singapore Red Cross Society's Project R.I.C.E which reaches out to underprivileged families by gifting them with rice during Chinese New Year.[24][25][26] The public could buy rice vouchers at a reduced price at any Sheng Siong outlet to support this initiative.[24][25] Sheng Siong raised the most amount of rice at 111,813 kg in 2013.[25]

Milestones and Awards

Some of Sheng Siong’s milestones are listed below:

1985 First Sheng Siong outlet was launched [6][7][27]
1987 A second outlet was opened in Bedok [6][7][27]
1995 Expanded to a third outlet at Woodlands – the first supermarket to offer both “wet and dry” shopping options [4][6][7][27]
2003 Three-in-one wet/dry market, supermarket and food court opened at Tekka Mall (now known as The Verge)
2007 - Launched the “Sheng Siong Show” on Mediacorp Channel 8.[10][22][27]

-Third-largest retailer in Singapore based on annual sales revenue from 2007 to 2013, according to the Retail Asia-Pacific Top 500 survey by Euromonitor International.[22]

2011 - Sheng Siong’s new Headquarters cum Distribution Centre officially opened at Mandai Link.[27]

- Sheng Siong Group Limited was listed on the Mainboard of the Singapore Exchange.[22]

Selected awards achieved:

2008 Achieved the “Superbrands” status award from 2008 to 2014.[17][22]
2011 Received the “Most Transparent Company Award under the New Issues Category at the Securities Investors Association Singapore (SIAS) Investors’ 12th Choice Awards.[28]
2012 - Received the “Most Transparent Company Award” under the Retail and Household Goods category at the SIAS 13th Investors’ Choice Awards.[28][29]

- Merit Award from the People’s Association Community Spirit Awards.[22]

- Awarded “Best of the Best” Retailer in Singapore for the Retail Asia Top 500 Awards from 2012 to 2013.[28][29]

2013 - Achieved the Solar Pioneer Award for the largest single solar panel installation in Singapore at their Mandai Distribution Centre.[20][21]

- Runner-up for the “Most Transparent Company Award” under the Retail and Household Goods category at the SIAS 14th Investors’ Choice Awards.[28]

2014 Winner of the Singapore Productivity Award [30]

See also

References

  1. 1 2 "Sheng Siong posts stronger profits for Q4FY15 on better margins". Business Times. 2016-02-23. Retrieved 2016-05-19.
  2. ↑ "Financial Highlights" (PDF). OCBC Bank. Retrieved 2011-07-13.
  3. ↑ "Retailing in Singapore". Euromonitor. Feb 2012. Retrieved 2013-03-05.
  4. 1 2 3 4 5 Chan, F (2009-06-10). "From pig farmer to supermarket chain owner". The Straits Times. Retrieved from NewspaperSG. Retrieved 17 February 2015.
  5. ↑ "Sheng Siong kidnapping: From pig farmer to supermarket tycoon; from the archives". The Straits Times. Retrieved from NewspaperSG. 2014-01-10.
  6. 1 2 3 4 5 Teo, G (2003-08-17). "Now showing - Supermarket sweep". The Straits Times. Retrieved from NewspaperSG. Retrieved 17 February 2015.
  7. 1 2 3 4 Mulchand, A; Fong, T (2004-06-13). "His children will just have to fend for themselves". The Straits Times. Retrieved from NewspaperSG. Retrieved 17 February 2015.
  8. ↑ Alvin Chua (2010-06-16). "NLB / Sheng Siong". National Library Board. Retrieved 2012-03-15.
  9. 1 2 Mulchand, A; Fong, T (2004-06-13). "Mr No Frills". The Straits Times. Retrieved from NewspaperSG. Retrieved 17 February 2015.
  10. 1 2 3 4 5 6 Mak, M.S. (2008-02-11). "Mind your p’s and Queues". The Straits Times. Retrieved from Factiva.
  11. ↑ "Sheng Siong chain climbs to third in S'pore for turnover". The Straits Times. 2008-08-01. Retrieved 2011-08-18.
  12. ↑ "Superbrands Volume IV / Sheng Siong" (PDF). Superbrands. Retrieved 2011-08-18.
  13. ↑ "Superbrands Volume V / Sheng Siong" (PDF). Superbrands. Retrieved 2011-08-18.
  14. ↑ "Sheng Siong IPO: Wrong timing, but the right stock?". Business Times. Retrieved 2011-07-13.
  15. ↑ "Singapore's 50 Richest". Forbes. 2014. Retrieved 17 February 2015.
  16. ↑ "Sheng Siong inks deal to operate supermarkets in China". The Straits Times. 2014-12-28. Retrieved 15 April 2015.
  17. 1 2 "Annual Report 2014" (PDF). Sheng Siong Group Ltd. 2014. Retrieved 15 April 2015.
  18. 1 2 Chan, D (2014-07-24). "Sheng Siong rings up healthy profits". The Straits Times. Retrieved from Factiva.
  19. ↑ Chua, G (2013-09-26). "Sheng Siong to fit 'largest solar panel system here'". The Straits Times. Retrieved 17 February 2015.
  20. 1 2 Candice (2013). "Awarding the future of solar energy". Retrieved 17 February 2015.
  21. 1 2 Shah, V (2014-11-03). "One company's mission to break solar records in Singapore". Retrieved 17 February 2015.
  22. 1 2 3 4 5 6 7 Song-Dijong, C (2013). "Superbrands. Volume VI: an insight into many of Singapore's strongest brands" (PDF). Singapore: SB Asia: 64–65. Retrieved 17 February 2015.
  23. ↑ "《缤纷万千在昇菘16》The Sheng Siong Show 16". Mediacorp. 2014. Retrieved 17 February 2015.
  24. 1 2 "PROJECT R.I.C.E 2014". Singapore Red Cross Society. 2014. Retrieved 17 February 2015.
  25. 1 2 3 "Bringing Love in Every Grain: project rice 2013". Singapore Red Cross Society. 2013. Retrieved 17 February 2015.
  26. ↑ "CUSTOMERS PLEDGE THEIR RICE DONATIONS FOR THE needy through buying special rice vouchers". Singapore Red Cross Society. 2013. Retrieved 17 February 2015.
  27. 1 2 3 4 5 "Milestones". Sheng Siong. 2014. Retrieved 17 February 2015.
  28. 1 2 3 4 "Annual Report 2013" (PDF). Sheng Siong Group Ltd. 2013. Retrieved 17 February 2015.
  29. 1 2 "Annual Report 2012" (PDF). Sheng Siong Group Ltd. 2012. Retrieved 17 February 2015.
  30. ↑ Kan, F (2014-11-06). "Banking on productivity for sustainable growth". The Business Times. Retrieved 17 February 2015.
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